The market is showing signs of softening this week, which was to be expected. Overall prior weeks it was chugging away quite decently.
This week there was 67 solds vs 102 last week. The Inventory is lower than usual at this time of year with new homes coming on the market averaging about half of what typically in this spring rush we should see. That being said I had a new listing come out last week and we had an accepted offer first day on the market, if it’s the right product and there may be a buyer for it.
I think its too early to see if we will see price drops. For prices to decrease there typically will have to be a imbalance of supply and demand. This week we are seeing less demand and we might be working through the group of people that are motivated to buy, with the drop in solds. There are less listings coming out, however, if the amount of supply continues to remain constant and solds drop as they have so far, we will see prices come down. Next week will give more insight on the prices.
It is tough to predict what will happen. This is relatively unheard of event, there has been a lot of proactive measures put in place by the Government of Canada and stimulus out there to help people affected.
The mortgage deferral options for up to 6 months will help with temporary cashflow for people on the fence of losing their home and with no rainy day fund. Probably see increase in foreclosures late summer and people motivated to sell come June would be my prediction, but depends on how quickly there is turnaround.
Reach out if you have any other questions or if there is anything I can do for you!